If a firm frequently changes the basis of its pay-for-performance system,it will most likely:
A) diminish its credibility gap.
B) violate its psychological contract with employees.
C) generate fear among employees due to a lack of control.
D) increase employees' intrinsic drive to perform beyond expectations.

Question

Quizplus · Accepted Answer

Frequent changes in pay-for-performance system can result in a violation of the psychological contract between the organization and employees. This can lead to a decrease in trust and commitment from employees towards the organization, as they may not feel they can rely on the system to reward their performance fairly and consistently.

If a Firm Frequently Changes the Basis of Its Pay-For-Performance